Delta Air Lines sues Ex-Im Bank

By Victoria
April 5, 2013 11:44

Delta Air Lines has filed a lawsuit to block US Export-Import Bank loan guarantees for foreign carriers’ purchases of Boeing aircraft to stop guarantees of more than $100 million approved for Emirates Airlines, LOT Polish Airlines, Etihad Airways, Latam Airlines Group and Korean Air Lines.
Delta claims in the suit that the bank violated the law by approving the guarantees “without any consideration of plaintiffs’ comments and the adverse effects on US industry and employment”.
“Because Ex-Im Bank loan guarantees lower their cost of capital, these foreign airlines will recoup their investment in their new aircraft faster or reduce ticket prices on competing routes without adversely impacting their relative rate of return on those investments,” Delta said in its complaint, which was joined by Hawaiian Airlines Inc. and the Air Line Pilots Association.